Let Coal India e-auction surplus coal of captive mines

NEW DELHI: In the backdrop of controversial diversion of coal by some private companies from their captive mines, the coal ministry has proposed that surplus stocks be given to CIL for sale through e-auction.

"Any surplus coal produced/generated (from the captive mines).... shall be transferred to nearest Coal India (CIL) subsidiary....(and) shall be disposed by e-auction by the CIL," says an official document of the Coal Ministry.

Under e-auction, coal is sold at spot market price. Around 10 per cent of the total coal produced by CIL, which accounts for over 80 per cent of the domestic coal production, is sold through e-auction.

The document also suggested penal action, including coal block cancellation, against companies, which have been alloted captive blocks, are found selling coal.

"Any attempt to sell coal alongwith middlings and rejects shall amount to breach of law as well as the breach of terms and conditions of allocation/mining lease/FSA...and the company attempting to do so shall invite penal action, including cancellation of allocation and/or termination of mining lease/FSA," the document said.